Burberry Year Starts Strongly, 1Q Sales Up 27%

13th Jul 2010 07:18

By Simon Zekaria Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Burberry PLC (BRBY.LN) Tuesday said its new fiscal year started strongly as the U.K. luxury fashion house posted a 27% rise in first-quarter sales. Sales in the quarter ended June 30 rose to GBP291 million from GBP229 million a year earlier, including the restructured Spanish operations, beating market expectations of GBP261 million. That compares with a 2% fall in sales in the fourth quarter of fiscal 2010 and a 15% rise in the third quarter. The performance was driven by Burberry's operations in Europe and Asia Pacific. At constant exchange rates, first-quarter sales rose 21%. "With double-digit sales growth in both retail and wholesale, Burberry has delivered a strong start to the year," Chief Executive Angela Ahrendts said in a statement. In May, Burberry--known for its outerwear apparel such as raincoats and iconic red, black and camel colored checked designs--said it would accelerate spending on growth initiatives after it recorded a forecast-beating 23% rise in full-year core earnings to March 31. The company's current guidance is for 10% growth in average retail selling space in the year to March 2011 and wholesale sales in the first half to Sept. 30 to grow at constant rates by around 10% including Spain. For its licensing business, Burberry expects a full-year decline of 5% to 10% at constant exchange rates. Burberry shares closed Monday at 789 pence, valuing the company at GBP3.43 billion. The stock has risen 90% over the past 12 months. -By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410; [email protected] (END) Dow Jones Newswires July 13, 2010 02:18 ET (06:18 GMT)